Congress Sends Obama Bill Shielding Airlines From EU Rule

By Jim Snyder and Mark Drajem -
Nov 13, 2012

The House passed and sent President
Barack Obama a bill barring U.S. airlines from paying penalties
in a European Union plan to cut carbon emissions, a day after an
EU commissioner proposed halting implementation of the program.

Representative John Mica, a Florida Republican and chairman
of the House Transportation and Infrastructure Committee, said
during debate today that the EU plan was an “unfair tax” on
U.S. carriers.

“We’ve got to hold people’s feet to the fire in
respecting” U.S. sovereignty, Mica said.

The legislation, which passed by voice vote, seeks to
ensure U.S. airlines aren’t subject to fines under the EU
program unless an international framework is negotiated.

Because the Democratic-led Senate passed the measure Sept.
22, the action today sends the measure to Obama for his
signature. The White House hasn’t publicly taken a position on
the bill.

Representative Henry Waxman, a California Democrat, opposed
the bill, saying nations needed to reduce carbon emissions to
reduce the risks of climate change. He called the bill
“unnecessary” and “counterproductive” given the EU
announcement.

U.S. airlines, including Delta Air Lines Inc. (DAL), have lobbied
for the U.S. legislation, arguing the EU’s plan to expand its
emissions trading system, or ETS, to cover foreign carriers
violated international law.

‘Global Approach’

“Delta favors a global approach to the issue of aviation
emissions,” Trebor Banstetter, a spokesman for Atlanta-based
Delta, said yesterday in a statement. “Delta continues to
support legislation from Congress opposing the EU ETS.”

EU Climate Commissioner Connie Hedegaard said yesterday she
was recommending a delay in implementation of greenhouse-gas
curbs on flights in and out of Europe in order to “create a
positive atmosphere” for talks to establish a global market-
based mechanism to reduce carbon emissions.

Russia, China and the U.S. had objected to a planned
expansion of the EU emissions trading system.

Airlines for America, a Washington-based group that
represents carriers, said that it was “cautiously optimistic.”